FBR’s Customs Committee Rejects 16% Customs Duty on Sodium Naphthalene Sulphate

The customs classification committee of the Federal Board of Revenue (FBR) has rejected the higher rate of 16 percent customs duty on the import of “Sodium Naphthalene Sulphate FON-A” a raw material used in making different chemicals in local markets. The FBR’s customs classification committee has declared a 3 percent customs duty on the import of “Sodium Naphthalene Sulphate FON-A”. The ruling of the FBR’s customs classification committee revealed that the Collectorate of Customs (Appraisement) East forwarded a reference for the determination of classification of ‘Sodium Naphthalene Sulphate FDN-A’. Brief facts as reported by the referring Collectorate are that M/s Vertex Chemicals (Pvt) Ltd. Imported a consignment declared to contain ‘Sodium Naphthalene Sulphate FDN-A’ under PCT heading 3824.9999. On Lab Test, the goods were reported as sodium salts of naphthalene sulfonate formaldehyde condensate product in form of dark brown powder. During scrutiny, the Collectorate found that Sodium Naphthalene Sulphate FDN-A is directly used as a superplasticizer and used as concrete admixture, which is classifiable under Head 3824.4000. Another company M/s Ultra Construction Chemicals (Pvt) Ltd filed a complaint before the Federal Tax Ombudsman for ascertainment of classification. The departmental representative reiterated the stance of the Collectorate that the impugned goods are superplasticizer for concrete or concrete admixture which were correctly classifiable under PCT heading 3824.4000 as “Prepared additive” by application of GIR Rule 3(a). On the other hand, the representatives of the importers contended that the subject goods were raw materials used as concrete admixtures and used in making different chemicals for customers in the local market of Pakistan. Incharge Custom House Lab was called who opined that the impugned goods were not prepared additives. It was observed that the issue of classification arose in past and the Collectorate was classified in the PCT heading 3824.9999. Past and present clearance history showed that the goods released under PCT heading 3824.9999. The current aforementioned Custom House Lab opinion also says that the impugned good is not prepared additives, thereby cannot be classified as prepared additives under PCT heading 3824.4000. In view of the foregoing, “Sodium Naphthalene Sulphate FON-A” is appropriately classified under PCT Heading 3824.9999, classification committee added. The said classification determination is specific to the product whose details/ specifications have been given above. Further, the ruling is based on the documents, literature and information provided by the referring Collectorate/importer and shall be treated as annulled if it is found at any subsequent stage that the same was obtained by providing incorrect, false, misleading or incomplete information.